Skip to results
OdishaTenders
Upgrade

Contractor Guide

What is EMD in a Government Tender?

EMD stands for Earnest Money Deposit — a refundable security deposit that every bidder must submit along with their bid for a government tender. It proves you are a serious bidder and protects the government if a winning bidder withdraws after being awarded the contract.

Typical EMD

1–2% of tender value

Refundable?

Yes — for all unsuccessful bidders

Refund timeline

15–30 days after award

How is EMD Calculated?

In Odisha government tenders, EMD is typically set at 1% to 2% of the estimated tender value, subject to a minimum and maximum cap specified in the tender document (NIT). The exact amount is always stated clearly in the tender notice — you will see it on every tender detail page on OdishaTenders.

Example

Tender value: ₹50,00,000 (₹50 Lakh)
EMD rate: 2%
EMD payable: ₹1,00,000 (₹1 Lakh)

How to Pay EMD in Odisha

The Odisha eProcurement portal accepts EMD through the following modes:

  • Online payment through the eProcurement portal (NEFT/RTGS/Net Banking)
  • Bank Guarantee (BG) from a scheduled commercial bank
  • Fixed Deposit Receipt (FDR) pledged in favour of the inviting authority
  • Demand Draft (DD) from a nationalised bank, submitted physically before bid opening

Always confirm the accepted payment mode in the specific tender's NIT before submitting. Some tenders only accept online payment; others may require a physical DD.

EMD Refund Rules

Unsuccessful bidder✅ Full refundReturned within 15–30 days of contract award to the successful bidder.
Bid withdrawn before deadline✅ Full refundIf you withdraw before the submission deadline, EMD is refunded.
Tender cancelled by government✅ Full refundAll EMDs are returned if the tender is cancelled before award.
Successful bidder — after contract signing✅ Full refundEMD is released after you submit the Performance Security Deposit (usually 5% of contract value).
Bid withdrawn after deadline❌ ForfeitedWithdrawing a bid after the submission deadline results in forfeiture of the entire EMD.
Successful bidder refuses to sign contract❌ ForfeitedIf you are awarded the contract but refuse to sign within the stipulated time, EMD is forfeited.

EMD Exemptions

Certain bidders are exempted from paying EMD under Odisha government procurement rules:

  • Micro and Small Enterprises (MSEs) registered under MSME Act with valid Udyam Registration
  • NSIC-registered companies for tenders within their registered category and monetary limit
  • Central and State Government undertakings (PSUs) in some tender categories
  • Startups recognised by DPIIT may receive exemption in specific scheme-based tenders

Always check the specific NIT for exemption eligibility — not all tenders grant MSME exemptions.

EMD vs Performance Security Deposit

FeatureEMDPerformance Security
When paidAt bid submissionAfter contract award
PurposeConfirms bid seriousnessGuarantees contract completion
Typical amount1–2% of tender value5–10% of contract value
Refunded whenAfter contract signed by winnerAfter project completion & DLP

Browse current tenders with EMD details

Every tender on OdishaTenders shows the EMD amount upfront — no need to download the NIT.

Browse Tenders

EMD rules may vary by tender, department, and applicable government scheme. Always read the NIT and bid document carefully before submitting. This guide is for general information only and does not constitute legal or financial advice.